As was reported in the Sydney Morning Herald on 21 January 2016, ASIC announced that it has reviewed the practices of six major banks offering margin lending services and has concluded that they are allowing their customers to take on too much risk. ASIC said it had particular concerns for the financial safety of investors who were “double geared”.
Class Action law firm, Levitt Robinson has brought a class action against ASIC alleging that the regulator was negligent and committed misfeasance in public office after it failed to do anything to prevent the Storm Financial collapse, despite conducting four separate investigations into Storm over a period of 12 years and finding Storm in breach of multiple obligations. Storm Financial’s investment model, involved highly geared margin lending, often with double gearing.
For more information on the ASIC/Storm Financial Class Action, please contact Ben Brady at firstname.lastname@example.org.
A link to the Sydney Morning Herald article appears below: